External Division of Minor Pension Rights – Decision of the Saarland Higher Regional Court from June 5, 2020
In the course of pension adjustment, the question of how to deal with rights deemed minor in the case of an external division is of significant legal relevance. Particularly against the backdrop of recent case law, the decision of the Saarland Higher Regional Court (Case No. 6 UF 9/19) highlights the fundamental importance of statutory regulations on pension adjustment – especially when transferring minor rights to pension compensation schemes.
General Principles of Pension Adjustment
The aim of pension adjustment is to make the pension rights acquired during the marriage evenly distributed between the spouses. According to the relevant provisions of the Pension Adjustment Act (VersAusglG), there is, in principle, a complete adjustment of all entitlements acquired during the marriage. The internal division – i.e., the direct adjustment with the respective pension provider – takes precedence. Exceptions to this, such as the possibility of external division, are strictly defined.
Threshold for Minor Importance in Pension Adjustment
For rights whose compensation value is minor, the law provides for exclusion from adjustment under certain conditions according to § 18 para. 2 VersAusglG. This applies particularly in situations where the administrative effort for the pension provider is not reasonably proportional to the amount of the compensation value. As a result, the transfer of minor rights can be omitted if the corresponding pension value does not exceed a certain threshold of minor importance and if other legal requirements are met.
Decision of the Saarland Higher Regional Court
Presentation of Facts and Procedural Background
In the present case, one party sought to apply the threshold for minor importance regarding a company right with a low compensation value. This right was to be transferred to the pension compensation scheme of an external security provider as part of the external division. The lower court had considered exclusion due to minor importance.
Assessment of Rights in External Division
The Saarland Higher Regional Court emphasized in the appeal proceedings that in the external division of the right to a pension compensation scheme, excluding the compensation due to minor importance as per § 18 para. 2 VersAusglG is not possible in the same way as in an internal division. It is crucial that the purpose of the legal threshold for minor importance is to relieve pension providers of disproportionate administrative effort. However, this purpose is not applicable when it comes to external division to a pension compensation scheme. The transfer of the minor right to an external pension provider can be carried out without excessive administrative effort and must therefore be executed.
Relevant Considerations in Jurisprudence
The court thus clarified that a minor right in the case of external division by transferring to a pension compensation scheme is generally subject to pension adjustment. The possibility of disregarding minor compensation values is not granted under the given circumstances. The court’s decision aligns with the wording and purpose of § 18 para. 2 VersAusglG and thus confirms the obligation to adjust even minor rights, provided a low administrative effort for the original pension provider is ensured through external division.
Legal Classification and Consequences
This decision underlines that the external division through pension compensation schemes in the case of minor rights does not entitle exclusion from pension adjustment. It illustrates how the statutory objectives of pension adjustment, particularly the equal participation in pension rights acquired during the marriage, remain in place even when transferring minor entitlements.
Affected parties should be aware of the associated legal requirements and options for structuring. For further inquiries regarding the implementation of pension adjustment within the framework of divorce proceedings, the team at MTR Legal is available. For more information, please see our legal advice section on divorce.
